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Operations

USPS to cut 10,000 jobs in deal with DOGE

Hazel KingBy Hazel KingMarch 18, 20252 Mins Read
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Postmaster General Louis DeJoy
Postmaster General Louis DeJoy

USPS postmaster general Louis DeJoy has signed an agreement with the Department of Government Efficiency (DOGE) to help the service identify and achieve further efficiencies in line with its Delivering for America plan, which was launched in 2021.

In a letter to Congress, DeJoy said he had outlined four “big problems” which DOGE would help the postal service address – this mismanagement of USPS’s self-funded retirement assets; the mismanagement of its Workers’ Compensation Program which has resulted in US$400m a year in “excessive charges”; the “unfunded mandates” imposed on USPS by legislation; and its “burdensome regulatory requirements” that are restricting normal business practice.

“This is an effort aligned with our efforts, as while we have accomplished a great deal, there is much more to be done. We are happy to have others to assist us in our worthwhile cause,” he said.

According to DeJoy’s letter, the agreement with DOGE and the General Services Administration will result in the loss of 10,000 workers over the next 30 days through a “voluntary early retirement program” to help USPS continue to reduce its financial losses – which reached a net loss of US$2.5bn for the third quarter of 2024.

Finding a new leader

Last month, DeJoy announced he would be standing down from his role as postmaster general.

DeJoy stated in a letter to the board, “While there remains much critical work to be done to ensure that the Postal Service can be financially viable as we continue to serve the nation in our essential public service mission, I have decided it is time to start the process of identifying my successor and of preparing the Postal Service for this change.

“The major initiatives we are currently endeavoring are multi-year programs and it is important to have leadership in place whose tenure will span this future period. After four and half years leading one of America’s greatest public institutions through dramatic change during unusual times, it is time for me to start thinking about the next phase of my life, while also ensuring that the Postal Service is fully prepared for the future.”

The Governors of the Postal Service, working with key stakeholders, have begun the process of identifying an appropriate candidate to serve as the next postmaster general and chief executive officer of the USPS.

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